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Retail sales rise 7% in March thanks to seasonal jump
Bank Indonesia’s monthly real sales index jumped 7 percent in March as consumers spent more before and during Ramadan, while consumer confidence continued to rise.
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People browse clothing on June 9, 2020 at a store in Jakarta. (AFP/Bay Ismoyo)
Retailers reported a jump in sales last month as consumers apparently entered a spending mood before and during Ramadan.
A Bank Indonesia (BI) report based on preliminary data and released on Wednesday showed that its retail sales index jumped 7 percent in March, more than making up for the 3.4 percent month-to-month (mtm) drop in February.
The improvement was “attributable to all commodity groups, led by information and communication equipment, cultural and recreation goods, as well as food, beverages and tobacco [FBT],” BI spokesman Erwin Haryono stated in a press release published on the central bank’s website.
He added that aside from the seasonal effect of the Islamic fasting month, “discount programs and smooth distribution” had contributed to the strong performance.
Even though Muslim consumers refrain from eating and drinking during daylight hours during Ramadan, they tend to spend more on food and beverages, as sumptuous meals are common for iftar when they break the day’s fast at sundown, often in a ceremonial setting or a private gathering.
The BI monthly retail survey also showed that its March index for real sales was up 4.8 percent year-on-year (yoy) at 215.2. This marked acceleration from the 0.6 percent annual rise seen in February as consumers forked out more, particularly on FBT, cultural and recreation goods, as well as clothing.
Retailers continue to struggle with selling smartphones and other devices, with the data showing that March 2023 sales in information and communication equipment had decreased 9 percent compared to March 2021.
